Perhaps I've missed something, but where will the infinite amounts of training data come from, for future improvements?
If these models will be trained on the outputs of themselves (and other models), then it's not so much a "flywheel", as it is a Perpetual Motion Machine.
Perplexity has a dubious idea based around harvesting user chats -> making service better -> getting more user prompts. I am quite unconvinced that user prompts and stored chats will materially improve an LLM that is trained on a trillion high quality tokens.
The second idea being kicked around is synthetic data will create a new fountain of youth for data that will also fix its reasoning abilities.
If these models will be trained on the outputs of themselves (and other models), then it's not so much a "flywheel", as it is a Perpetual Motion Machine.